GAIL_ProjectsMonitorThough GAIL enjoys monopoly in natural gas marketing, resistance from customers has started emerging on various conditions stipulated by the company. Consumers are not only finding the price quoted by the gas marketing company high but also they find various other terms and conditions one-sided and impractical. Some of the conditions which are being opposed by the consumers are:

  • Provisions regarding Minimum Guaranteed Offtake (MGO) and Daily Nominated Quantity (DNQ) are tough and impractical
  • Metering security deposit demanded by the central gas marketing PSU is too high.
  • The notice period for revision of the DNQ has been kept at 100 days before the beginning of a calendar quarter which the consumers find too long.
  • MGO conditionality of a minimum of 90% of the DNQ is too high.
  • Planned shutdown by industrial units is limited to 21 days which they find too less.

Some consumers are finding many of these provisions inflexible and are preferring to opt out of the contract. It is learnt that nearly one-third of those who had signed with Gail Gas Ltd, a subsidiary of Gail, have reneged on their contract. Realizing the gravity of the situation, Gail Gas has reportedly relaxed some conditionalities to make it more consumer-friendly. Now Gail Gas has relaxed the notice period for change of Daily Contracted Quantity to jus seven days prior to the beginning of a quarter. Gail Gas has also brought down the MGO to 80% of the aggregate contracted quantity for the quarter from earlier stipulated 90%. Further, the gas supplier has also raised scheduled planned shutdown period to 30 days from earlier 21 days. Also notice period for planned shutdown has been brought down to just two days. Earlier, shut down period had to be finalized in the beginning of the calendar year.

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